US Economic Growth Revised Up to 3.1% in Q-2, Stocks Close at Record Highs

US Economic Growth Revised Up to 3.1% in Q-2, Stocks Close at Record Highs

US Economic Growth Revised Up to 3.1% in Q-2, Stocks Close at Record Highs

$DIA, $SPY, $QQQ, $VXX

Wall Street edged higher Thursday, as the S&P 500 marked a record high, while investors show confidence that President Donald Trump will make progress on his tax reform plan.

US Treasury Secretary Steven Mnuchin said President Trump’s proposal for a cut in the corporate income tax rate to 20% is “not negotiable.”

The US GDP grew at an upgraded annual rate of 3.1% in Q-2, the fastest pace in more than 2 years. But growth will like slow this Quarter in the wake of the devastating September hurricanes.

When President Donald Trump predicted that his policies would spur growth of 3% or more, many economists did not take him seriously.

“If we achieve sustained 3% growth, that means 12-M new jobs and $10-T of new economic activity. That’s some number,” President Trump said during a speech in Missouri in late August promoting tax reform. “I happen to be one that thinks we can go much higher than 3%. There is no reason we shouldn’t.”

The April-June expansion in the GDP (gross domestic product) the economy’s total output of goods and services up from the 3% estimate made a month ago, the US Commerce Department reported Thursday. It is the strongest performance since the economy grew at a 3.2% pace in Q-1 of Y  2015.

The year started with a lackluster 1.2% gainer in Q-1.

The revised figure was the government’s 3rd and final look at GDP for the April-June period, and left GDP rising at an average 2% pace over 1-H of this year. That matches the laverage annual growth rates seen since the recovery from the Great Recession began in mid-2009

Thursday, the major US stock market indexes finished at: DJIA +40.49 at 22381.20, NAS Comp +0.19 at 6453.45, S&P 500 +3.02 at 2510.06

Volume: Trade on the NYSE came in moderate at: 767.1-M/shares exchanged.

  • NAS Comp +19.9% YTD
  • DJIA +13.3% YTD
  • S&P 500 +12.1% YTD
  • Russell 2000 +9.7% YTD
HeffX-LTN Analysis for DIA: Overall Short Intermediate Long
Very Bullish (0.56) Very Bullish (0.71) Very Bullish (0.60) Bullish (0.38)
HeffX-LTN Analysis for SPY: Overall Short Intermediate Long
Bullish (0.36) Bullish (0.28) Bullish (0.46) Bullish (0.33)
HeffX-LTN Analysis for QQQ: Overall Short Intermediate Long
Bullish (0.32) Neutral (0.16) Neutral (0.21) Very Bullish (0.58)
HeffX-LTN Analysis for VXX: Overall Short Intermediate Long
Very Bearish (-0.55) Very Bearish (-0.63) Bearish (-0.35) Very Bearish (-0.67)

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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